The economy will not run without energy. Indonesia had made the energy sector as one of the driving source of the economy with an abundance of oil. The early 21st century Indonesia experienced an energy crisis and became a net importer of oil.

Inefficient energy consumption impact on the state budget for the subsidy also providing a negative impact on the environment by increasing the amount of accumulation of CO2 emissions. The question will be how to provide a comprehensive policy can be implemented in Indonesia that can save energy and save the state budget and the environment at the same time without reducing the welfare-oriented society. Therefore, this study aims to analyze, through the development of modeling, an option evaluation framework, energy policy scenarios and economic development. This economic modeling framework to assess the linkages between energy-environment-economy that is useful in planning future development.

Discussant: Ahmad Komarulzaman